After a tense political standoff, the United States government shutdown has officially ended as President Donald Trump signed a funding bill passed by the House of Representatives. The bill, which had already cleared the Senate, brings to a close the longest government shutdown in U.S. history, lasting a record 43 days.
The shutdown had far-reaching consequences, impacting approximately 1.4 million federal employees who were either furloughed or working without pay. The disruption extended beyond government services, affecting the crypto market and stalling progress on key developments in the digital asset space, including decisions on crypto ETFs. Proposals related to Litecoin (LTC), XRP, and Solana (SOL) had been awaiting review by the SEC, but were delayed due to the standstill in Washington.
The funding bill's passage was the result of intense debate between Democrats and Republicans. Democrats had pushed for increased funding for healthcare and to address the rising cost of living, while Republicans prioritized reopening the government, promising to address these concerns later. The House of Representatives ultimately voted in favor of the bill by a margin of 222 to 209. According to Fox News Digital, President Trump indicated his intention to sign the bill, which would fund the government through the end of January.
The end of the shutdown has been welcomed by the crypto industry, which had seen broader policy talks and the review of crypto ETFs frozen. Discussions involving Trump's proposed Strategic Bitcoin Reserve and the BITCOIN Act, supported by Senator Cynthia Lummis, had been put on hold. With the government reopened, these discussions are expected to resume, potentially shaping the future of U.S. crypto regulation.
News of the funding bill's progress and eventual signing spurred a surge in the prices of Bitcoin, Ethereum, and other major cryptocurrencies. Bitcoin climbed 4.4% to $106,119, while Ether jumped 7.8% to $3,632. XRP, BNB, and Solana also experienced gains. Peter Chung, Head of Research at Presto Research, noted that the political breakthrough helped ease recent market pressures. He added that the prolonged shutdown had drained liquidity in the overnight funding market, contributing to market jitters.
In addition to the positive impact on the crypto market, President Trump also proposed using tariff revenues to distribute $2,000 dividend payments to Americans and cover portions of their healthcare expenses. The shutdown had led to widespread disruptions in federal services, including air traffic and travel safety staffing, resulting in thousands of flight cancellations. Transportation Secretary Sean Duffy had warned of potential disruptions to Thanksgiving holiday travel. Reports estimated the shutdown's cost to the U.S. economy at between $10 billion and $30 billion per week, with a potential reduction of up to 2% in the national gross domestic product.
